WASHINGTON, Aug 7, 2015 - The State Department has made a determination approving a possible Foreign Military Sale to Japan for DDG 7 and 8 AEGIS Combat System, Underwater Weapon System, Cooperative Engagement Capability and associated equipment, parts and logistical support for an estimated cost of $1.5 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale on August 4, 2015.

The Government of Japan has requested a possible sale of two (2) ship sets of the MK 7 AEGIS Weapon System, AN/SQQ-89A (v) 15J UWS and CEC. Additional items include associated equipment, training and support for its Japan Fiscal Year (JFY) 2015 and JFY2016 new construction destroyers (DDGs). The ACS and associated support will be procured over a six (6) to seven (7) year period, as approved by Japan in budgets for JFY2015 and JFY2016. The estimated value of this proposed sale is $1.5 billion.

The ACS/UWS/CEC support ship construction for a new ship class of DDGs based upon a modified Atago-class hull (Ship Class not yet named) and a new propulsion system. The equipment and services to be provided include: two (2) ship sets of installation support material and special purpose test equipment, as well as the systems engineering, technical services, on-site vendor assistance, spare parts, systems training and staging services necessary to support ship construction and delivery. Post-construction Combat System Qualification Testing is expected to be procured in a future Foreign Military Sales (FMS) case.

Japan continues to modernize its fleet to support Integrated Air and Missile Defense (IAMD) roles and special mission requirements. The addition of two (2) new AEGIS DDGs will fulfill Japan’s mission goal of acquiring eight (8) ballistic missile defense capable ships and will further enhance interoperability with the U.S. Navy, build upon a longstanding cooperative effort with the United States, and provide enhanced capability with a valued partner in a geographic region of critical importance to Japan and the U.S. Government.

The proposed sale to Japan will represent an important commitment by the U.S. Government in furtherance of foreign policy and national security goals for both the United States and Japan. Japan is one of the major political and economic powers in East Asia and the Western Pacific and a key partner of the United States in ensuring peace and stability in that region. It is vital to the U.S. national interest to assist Japan in developing and maintaining a strong and ready self-defense capability. This proposed sale is consistent with U.S. foreign policy and national security objectives and the 1960 Treaty of Mutual Cooperation and Security.

The addition of two (2) new AEGIS DDGs to Japan’s fleet will afford more flexibility and capability to counter regional threats and continue to enhance stability in the region. Japan currently operates AEGIS ships and is proficient at using evolving ballistic missile defense capability and effective at employing the AN/SQQ-89 UWS for undersea surveillance and detection. Japan has demonstrated the capability and commitment necessary to incorporate CEC into its fleet and will capably assimilate this technology into its operations.

The proposed sale of these combat systems will not alter the basic military balance in the region.

The prime contractors will be Lockheed Martin, with offices based in Moorestown, NJ; Syracuse, NY; and Manassas, VA per sole source request from Japan as the primary AEGIS System Contractor for JFY 2015 and JFY 2016 DDG Class Ships. Japan has also requested Data Link Solutions, Cedar Rapids, IA be designated as the sole source prime contractor for the Multifunctional Information Distribution System (MIDS) on Ships (MOS) to reduce the cost of sparing and logistics for its AEGIS Ships. There are also a significant number of companies under contract with the U. S. Navy that will provide components and systems as well as engineering services during the execution of this effort.

Japanese industry has requested participation with U.S. industry as sub-contractors under the FMS case on a limited basis to provide selected components and software. Japanese industry sourced items are: 1) TR-343 Equivalent Replacement Sonar Transducers for SQS-53C sonar by NEC, 2) Partial AEGIS Display System application software by MHI, and 3) Partial AEGIS Display System Hardware and Common Display System hardware by Fujitsu. The Japan sourced products will be subject to product qualification, export control or other requirements for use in FMS-provided systems. The U.S. Navy retains the option to use U.S. Navy Programs of Record to source products or services as required to meet program requirements. There are no known offset agreements in connection with this potential sale.

Implementation of this proposed sale will require travel of U.S. Government or contractor representatives to Japan on a temporary basis for program technical support and management oversight.

There will be no adverse impact on U. S. defense readiness as a result of this proposed sale.

This notice of a potential sale is required by law and does not mean the sale has been concluded.

All questions regarding this proposed Foreign Military Sale should be directed to the State Department's Bureau of Political Military Affairs, Office of Congressional and Public Affairs, pm-cpa@state.gov.